April 12, 1999

To:Corporate Services Committee

From:Commissioner of Corporate Services

Subject:Conveyance of a Permanent Storm and Sanitary Easement

Over City lands at Ellesmere Road and Kennedy Road

(Ward 15 - Scarborough City Centre)

Purpose:

To authorize the conveyance of a permanent easement to IDMD Manufacturing Inc. ("IDMD") over City lands, for the purpose of installing storm and sanitary sewer connections for their plant expansion.

Funding Sources, Financial Implications and Impact Statement:

IDMD will pay the City $2,500.00 to cover the cost of document preparation and registration.

Recommendations:

It is recommended that:

(1)Council grant a permanent easement over Part lot 14, Plan 9953 and shown as Parts 1 and 2 on attached sketch plan to IDMD Manufacturing Inc., 931530 Ontario Ltd., and 826599 Ontario Ltd. in accordance with the terms and conditions detailed herein or such other terms as may be acceptable to the Commissioner of Corporate Services and Works and Emergency Services;

(2)the City Solicitor be authorized and directed to take the appropriate action to complete the transaction on behalf of the Corporation;

(3)the City and/or its successor and assigns retain the right to connect to the sewers within the easement; and

(4)the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference/Background/History:

The subject lands, located on the north side of Ellesmere road just east of Kennedy were acquired for, and in connection with, the Ellesmere/CNR Grade Separation Project, from Sextet Investments Limited and Cheeseworth's Limited, on October 17, 1978. The remnant lands have since been declared surplus. The property is currently listed for sale by CB Richard Ellis on the Toronto Real Estate Board MLS service.

The owners of an adjoining property to the north at 45 Progress Avenue submitted a development application to expand an existing industrial complex adding 50,000 square feet of industrial building. In reviewing the development application, Works & Emergency Services staff determined that the proposed addition could only be serviced by extending storm and sanitary services north from Ellesmere through the City-owned property. Initially IDMD inquired about purchasing the City land and upon learning of the sale process, decided it more expedient to immediately proceed with their planned expansion. Their interest in purchasing remains.

The consultant responsible for overseeing the IDMD development application was made aware of the servicing requirements by Works & Emergency Services staff. A request for an easement was made in December 1998. The location of the proposed easement was established by Works and Emergency Services staff. While waiting for a formal response to their request for an easement IDMD applied for and received a foundation permit for their proposed addition. In constructing the foundation, the contractor also installed the sewers across the City property without approval. It is noted that the contractor has oversized the sewers at the City's request in order that the City land can also be serviced through these sewers. A permit to connect the sewers into the municipal system is being withheld pending resolution of the easement across the City property.

Comments and/or Discussion and/or Justification:

The drainage patterns as established by the former City of Scarborough require that the rear of 45 Progress Avenue can only be serviced by crossing the City-owned lands and connecting to the sewers on Ellesmere Road.

Staff are recommending that the City grant IDMD a permanent easement for their sanitary and storm sewer connection in exchange for the oversizing of the sewers to handle the servicing of the City land and provision for a connection within the easement to service the City property. IDMD has also agreed to pay $2,500.00 for the cost of the easement documentation and registration and have provided the necessary reference plan.

Conclusion:

The location of the services was approved by Works and Emergency Services staff and a service connection across the municipally-owned property is the only way to service the rear portion of the industrial property at 45 Progress Avenue. The presence of storm and sanitary sewers and a ready connection to service the City's lands is beneficial to the City.

It is therefore recommended that the City grant IDMD Manufacturing Inc. a permanent easement for storm and sanitary sewers across the City-owned lands described as Parts 1 and 2 on the draft plan attached, in exchange for the sum of $2,500.00 and the right for the City or its successors in title to connect to the sewers within the easement without further cost.

Contact Name:

Mr. R. Mayr, AACI, Director, Real Estate Services, (416)396-4930, Fax No.: (416)396-4241, E-Mail Address: mayr@city.scarborough.on.ca (cs99044.wpd)

Margaret Rodrigues

Commissioner of Corporate Services

MHC/vp